Tell South Dakota Lawmakers: Reduce the Sales Tax the Right Way!

When lawmakers raised the sales tax rate from 4 to 4.5 percent in 2016, an amendment was included.

It explicitly said that if the U.S. Supreme Court ruled in favor of allowing states to collect online sales taxes, South Dakota would have to reduce the sales tax rate by .1 percentage points for every $20 million raised from online sales taxes.

Lawmakers must fulfill the deal made with taxpayers by passing legislation affirming that the sales tax rate should be reduced. Unfortunately, state lawmakers are now considering Senate Bill 86 to try to address that. SB86 is the wrong solution.

SB86 does not clarify how often the $20 million in online sales tax would be measured. SB86 also says the sales tax rate could be reduced by introducing a separate bill.

That’s not good enough. Send lawmakers a message, telling them that SB86 is not the answer!

Sign The Letter

Dear Senator:

I’m writing to ask you to oppose Senate Bill 86. Although it addresses an important issue in our state’s tax code, this bill is not the correct solution.

When the state legislature voted to increase the sales tax from 4 to 4.5 percent in 2016, the bill included an amendment pledging to reduce the rate by .1 percentage points for every $20 million raised from online sales taxes.

Now that the state is collecting online sales taxes, it’s time to lower the general sales tax. But SB86 is the wrong way to go about it. The bill does not clarify how often the $20 million raised from online sales tax would be measured to trigger that .1 percent reduction.

SB86 also says the sales tax rate could be reduced by introducing a separate bill, which does not guarantee that a rate reduction will ever happen.

Because of the bill’s vague language, I ask you to oppose SB86 and find a better way to reduce the sales tax.

Sincerely,

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When lawmakers raised the sales tax rate from 4 to 4.5 percent in 2016, an amendment was included.

It explicitly said that if the U.S. Supreme Court ruled in favor of allowing states to collect online sales taxes, South Dakota would have to reduce the sales tax rate by .1 percentage points for every $20 million raised from online sales taxes.

Lawmakers must fulfill the deal made with taxpayers by passing legislation affirming that the sales tax rate should be reduced. Unfortunately, state lawmakers are now considering Senate Bill 86 to try to address that. SB86 is the wrong solution.

SB86 does not clarify how often the $20 million in online sales tax would be measured. SB86 also says the sales tax rate could be reduced by introducing a separate bill.